diff --git a/.vscode/launch.json b/.vscode/launch.json
index 6cd4fbd..5976b05 100644
--- a/.vscode/launch.json
+++ b/.vscode/launch.json
@@ -17,7 +17,6 @@
             ],
             "preLaunchTask": "npm: compile",
             "env": {
-                "AZCODE_VIRTUALMACHINES_IGNORE_BUNDLE": "1",
                 "DEBUGTELEMETRY": "1",
                 "NODE_DEBUG": ""
             }
@@ -58,7 +57,6 @@
             ],
             "preLaunchTask": "npm: compile",
             "env": {
-                "AZCODE_VIRTUALMACHINES_IGNORE_BUNDLE": "1",
                 "MOCHA_grep": "", // RegExp of tests to run (empty for all)
                 "MOCHA_enableTimeouts": "0", // Disable time-outs
                 "DEBUGTELEMETRY": "1",
diff --git a/gulpfile.ts b/gulpfile.ts
index edb020e..df8ee41 100644
--- a/gulpfile.ts
+++ b/gulpfile.ts
@@ -11,10 +11,20 @@
 // tslint:disable:no-unsafe-any
 
 import * as cp from 'child_process';
+import * as fse from 'fs-extra';
 import * as gulp from 'gulp';
 import * as path from 'path';
 import { gulp_installAzureAccount, gulp_webpack } from 'vscode-azureextensiondev';
 
+async function prepareForWebpack(): Promise<void> {
+    const mainJsPath: string = path.join(__dirname, 'main.js');
+    let contents: string = (await fse.readFile(mainJsPath)).toString();
+    contents = contents
+        .replace('out/src/extension', 'dist/extension.bundle')
+        .replace(', true /* ignoreBundle */', '');
+    await fse.writeFile(mainJsPath, contents);
+}
+
 function test() {
     const env = process.env;
     env.DEBUGTELEMETRY = '1';
@@ -24,6 +34,6 @@ function test() {
     return cp.spawn('node', ['./node_modules/vscode/bin/test'], { stdio: 'inherit', env });
 }
 
-exports['webpack-dev'] = () => gulp_webpack('development');
-exports['webpack-prod'] = () => gulp_webpack('production');
+exports['webpack-dev'] = gulp.series(prepareForWebpack, () => gulp_webpack('development'));
+exports['webpack-prod'] = gulp.series(prepareForWebpack, () => gulp_webpack('production'));
 exports.test = gulp.series(gulp_installAzureAccount, test);
diff --git a/main.js b/main.js
index 102263a..0171723 100644
--- a/main.js
+++ b/main.js
@@ -16,12 +16,10 @@ let perfStats = {
 
 Object.defineProperty(exports, "__esModule", { value: true });
 
-const ignoreBundle = !/^(false|0)?$/i.test(process.env.AZCODE_VIRTUALMACHINES_IGNORE_BUNDLE || '');
-const extensionPath = ignoreBundle ? "./out/src/extension" : "./dist/extension.bundle";
-const extension = require(extensionPath);
+const extension = require('./out/src/extension');
 
 async function activate(ctx) {
-    return await extension.activateInternal(ctx, perfStats);
+    return await extension.activateInternal(ctx, perfStats, true /* ignoreBundle */);
 }
 
 async function deactivate(ctx) {
diff --git a/src/extension.ts b/src/extension.ts
index a2ad1ad..e8529ad 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -21,8 +21,9 @@ import { AzureAccountTreeItem } from './tree/AzureAccountTreeItem';
 import { SubscriptionTreeItem } from './tree/SubscriptionTreeItem';
 import { VirtualMachineTreeItem } from './tree/VirtualMachineTreeItem';
 
-export async function activateInternal(context: vscode.ExtensionContext, perfStats: { loadStartTime: number; loadEndTime: number }): Promise<AzureExtensionApiProvider> {
+export async function activateInternal(context: vscode.ExtensionContext, perfStats: { loadStartTime: number; loadEndTime: number }, ignoreBundle?: boolean): Promise<AzureExtensionApiProvider> {
     ext.context = context;
+    ext.ignoreBundle = ignoreBundle;
     ext.reporter = createTelemetryReporter(context);
     ext.outputChannel = createAzExtOutputChannel('Azure Virtual Machines', ext.prefix);
     context.subscriptions.push(ext.outputChannel);
diff --git a/src/extensionVariables.ts b/src/extensionVariables.ts
index 310ba50..c9b70ad 100644
--- a/src/extensionVariables.ts
+++ b/src/extensionVariables.ts
@@ -19,7 +19,6 @@ export namespace ext {
     export let tree: AzExtTreeDataProvider;
     export let treeView: TreeView<AzExtTreeItem>;
     export let azureAccountTreeItem: AzureAccountTreeItem;
-    // tslint:disable-next-line: strict-boolean-expressions
-    export let ignoreBundle: boolean = !/^(false|0)?$/i.test(process.env.AZCODE_VIRTUALMACHINES_IGNORE_BUNDLE || '');
+    export let ignoreBundle: boolean | undefined;
     export const prefix: string = 'azureVirtualMachines';
 }